Cruise Ship Under SAC Code 996424

Cruise ship services cover passenger travel and leisure trips by sea going cruise ships, where transport is combined with stay, food, entertainment and onboard activities. Operators offer cabin accommodation, meals and guided experiences as part of the voyage. Under GST, such cruise ship passenger services are classified under SAC 996424. This SAC code and its GST rate decide how GST applies on cruise packages.  This helps travellers combine sea travel with holiday, leisure and entertainment in one package.

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996424 SAC Code GST Rate

Review old and new GST rates for Cruise Ship under 996424 SAC Code.

Cruise ship services under SAC 996424 are treated as passenger transport and tourism services by sea under GST. These are largely taxable because they provide leisure and holiday experiences along with transport.

After the September 2025 rationalisation, taxable passenger transport services under these codes generally fall in the 5 percent slab without input tax credit for standard transport models, while certain premium, charter or tourism oriented services can attract 18 percent with input tax credit. The exact rate and conditions depend on the latest GST notifications for each category.

The table below shows the latest standard GST rate for SAC code 996424 where the service is taxable.

SAC Code

996424

Description

Coastal and transoceanic (overseas) water transport services of passengers by Ferries, Cruise Ships etc

New Rate

18% with ITC

Old Rate

18% with ITC

Notes

Public transport by vessel between places in India, not mainly for tourism, is exempt. Other coastal and overseas passenger shipping, including cruises, is 18% with ITC. Source: Notification 12/2017-Central Tax (Rate), S. No. 17(d); Notification 11/2017-Central Tax (Rate), S. No. 8(vii).

When issuing invoices for taxable passenger transport services under this SAC code, operators should clearly show the fare, the GST rate and the tax amount so that passengers and corporate clients understand the charge. The same SAC code and rate should be applied in GSTR 1 and GSTR 3B for outward supplies, and exempt services should be reported correctly wherever required.

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Practical Classification Guidance

Passenger transport operators should choose the SAC code that best matches the main type of service they provide. Correct SAC selection and correct use of 5 percent or 18 percent GST slabs, along with exemption rules where applicable, help reduce disputes, maintain a clear tax trail and make GST returns easier to explain during scrutiny or audits.

Conclusion

Cruise ship services under SAC 996424 cover sea going cruise travel that combines transport with stay, food and entertainment. These services are typically taxable within the 5 percent and 18 percent slab structure depending on how the package is designed. Cruise operators should examine each package carefully, apply the appropriate GST rate on invoices and keep the same classification in GST returns. For international or multi port cruises, it is wise to study the latest GST guidance and seek expert advice.

Frequently Asked Questions

Clear answers to common queries about SAC Code 996424 and GST compliance.

What is SAC code 996424 in GST for cruise ship services?

SAC 996424 covers coastal and transoceanic transport of passengers by sea going vessels and cruise ships. It includes long distance cruise journeys, coastal voyages and similar passenger services where ships or large vessels carry people over sea routes, often combining travel with leisure facilities on board.

Does SAC 996424 cover coastal and transoceanic passenger cruise transport?

Yes. Passenger cruise liners, coastal cruise services and other long sea journeys where the main purpose is transporting and hosting passengers on ships are generally grouped under SAC 996424. It applies to both domestic coastal cruises and international sea cruises starting or ending in India.

What GST rate applies to cruise ship services under SAC 996424?

Cruise services are usually treated as regular taxable passenger transport with significant value addition, so they commonly attract higher GST rates, often around 18%. Some specific parts of the package may have different treatment, but in general, cruise tickets are not covered under basic transport exemptions.

Should holiday cruise packages use SAC 996424 on invoices?

Yes. When a company sells cruise based holiday packages where sea transport and on board stay are the main components, invoices should normally mention SAC 996424. If the package includes separate land stays and tours, multiple SAC codes or tour operator rules may also come into play.

Can cruise operators claim ITC on services billed under SAC 996424?

Cruise operators providing taxable services can usually claim input tax credit on eligible inputs like maintenance, catering services procured, port charges and other taxable supplies used for running the cruise, subject to general GST credit restrictions and any specific rules for passenger transport and hospitality sectors.

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Important Disclaimer

The above does not constitute professional advice or a formal recommendation. We recommend consulting a professional tax consultant before acting on the information contained in this piece of content.